IHSG weakens to 6,220 ahead of MSCI release and interest rate 'wait and see'
The Jakarta Composite Index (IHSG) of the Indonesia Stock Exchange (BEI) closed lower on Wednesday, falling 34.23 points or 0.55 percent to 6,220.74, as market participants adopted a wait-and-see approach regarding the direction of domestic and global benchmark interest rates, as well as upcoming announcements from MSCI. Meanwhile, the LQ45 index of 45 leading stocks rose 0.55 points or 0.09 percent to 625.23.
‘IHSG moved mixed while awaiting several important agendas,’ said Phintraco Sekuritas Head of Research Ratna Lim in her review in Jakarta on Wednesday. Ratna noted that investors tended to be cautious ahead of numerous upcoming events, namely the benchmark interest rate policy at the FOMC meeting of The Fed on Thursday (18/6) and the Board of Governors Meeting of Bank Indonesia on Thursday (18/6). Additionally, market participants are anticipating the MSCI Global Market Accessibility Review on Friday (19/6), the FTSE index rebalancing on Friday (19/6), and the MSCI Annual Market Classification Review on Wednesday (24/6).
According to consensus, The Fed will maintain its benchmark interest rate at 3.5-3.75 percent, while Bank Indonesia is expected to raise the BI Rate by 25 basis points to 5.75 percent. The rupiah exchange rate closed 0.21 percent weaker at Rp17,762 per US dollar in the spot market on Wednesday, awaiting the results of the FOMC meeting and the Bank Indonesia Board of Governors meeting.
After opening stronger, the IHSG remained in positive territory until the close of the first trading session. In the second session, the IHSG moved into the red zone until the close of stock trading. Based on the IDX Sectoral Index, two sectors strengthened, led by the primary consumer goods sector which rose 0.58 percent, followed by the infrastructure sector which gained 0.32 percent. Meanwhile, nine sectors weakened, with the industrial sector falling the deepest at 2.51 percent, followed by the transportation & logistics and energy sectors which fell 2.03 percent and 2.01 percent respectively.
Stocks experiencing the largest price gains included BCIC, DEFI, ESIP, RONY, and KONY. Stocks recording the largest price declines were GHON, BINA, NZIA, BREN, and POLU. Trading frequency was recorded at 2,315,000 transactions, with a total of 31.47 billion shares traded worth Rp24.67 trillion. A total of 306 stocks rose, 409 stocks fell, and 244 stocks were unchanged.
Regional Asian bourses in the afternoon session saw the Nikkei index strengthen 0.83 percent to 69,980.00, the Shanghai index gain 0.40 percent to 4,108.08, the Hang Seng index weaken 0.74 percent to 24,312.16, and the Strait Times index rise 1.16 percent to 5,176.46.